Mahindra & Mahindra to buy 51% of Peugeot Motorcycles

Article by Christian A., on October 10, 2014

Mahindra & Mahindra Ltd. will acquire a 51-percent stake in Peugeot Motorcycles as it bids to expand its motorcycle business by gaining access to European technologies. Peugeot Motorcycles is the scooter unit of PSA/Peugeot-Citroen.

The deal is part of a plan by PSA chief executive Carlos Tavares to stop the carmaker’s financial bleeding and start making profits. Selling the stake to Mahindra will lessen PSA’s exposure to Peugeot Motorcyles, which has posted losses for a decade while failing to keep up with Italian scooter maker Piaggio.

Mahindra Two Wheelers Ltd. plans to inject EUR15 million ($18.9 million) into Peugeot Motorcycles, Mahindra said in a stock exchange filing. The stake buy in Peugeot Motorcycles should allow Mahindra to better compete with the current leaders in India’s fast-growing two-wheeler market -- Hero MotoCorp and Honda.

Mahindra would also be better positioned to penetrate a scooter market which sales jump 23 percent in the year ended March. Peugeot Motorcycles logged an 8-percent jump in scooter sales in 2013 to 79,000 unit.

It currently employs almost 500 workers in France and 300 more at a joint venture in China. Tavares told French radio RTL last month that the Peugeot Motorcycles was a drag on the group, adding that a solution to get rid of the liability.

If you liked the article, share on:

Comments

Recommended

A lot of gearheads we know enjoy tweaking their cars to make them look and perform like the dream car they cannot afford. There is nothing wrong with that though....
by - September 25, 2017
Potential customers in Hamburg, Germany who want to a good look at one of Bugatti’s prized offerings could now do so at the French super sports car brand’s latest showroom...
by - September 25, 2017
According to Japanese website Car Sensor, Mazda recently claimed that they might borrow a platform from Toyota, which they will use for the next generation Mazda6, so this can be...
by - September 25, 2017
The Infiniti QX50 compact crossover has been in the market since 2014, and has not been given a facelift since then. After being in the market for almost four years,...
by - September 25, 2017
It has been two years since Fiat Chrysler Automobiles started courting suitors for a potential buyout. Naturally, two Chinese automakers namely Guangzhou Automobile Group and Great Wall Motor Company have...
by - September 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries